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Treasurer says district filed objection to Sawmill Delaware CRA; warns of potential revenue loss and bond-fund pressures
Summary
Treasurer/CFO told the board the district submitted a formal objection to a City of Delaware Community Reinvestment Area (CRA) request for a 75% exemption over 15 years, estimating potential district revenue loss and flagging pressure on 2019 bond funds for ongoing projects.
The treasurer/CFO reported to the board on July 14 that Delaware City presented a Sawmill Delaware Community Reinvestment Area (CRA) application to the city for a 75% tax exemption over 15 years and that the district has submitted a formal objection.
The treasurer said the district’s initial estimate of the project value was about $14,000,000, which was later updated to approximately $11,000,000. Using the city’s proposed 75% exemption, the treasurer said the district estimates it could lose in excess of potentially $1,800,000 over the exemption period. The treasurer noted these are estimates; final impacts depend on the county auditor’s valuation when the project is completed.
The treasurer emphasized that under current law this type of CRA does not require school-district approval and that the district nonetheless filed its objection through counsel. The district’s formal objection letter to the city was provided, and the treasurer said she had received some city responses and will follow up as discussions continue.
Separately, the treasurer discussed capital funding pressures tied to the district’s 2019 bond proceeds. The board heard that most of the district’s safety and security work this summer was funded from the 2019 bond funds and a roughly $64,000 safety grant. The treasurer said telephone-system upgrades may be necessary to integrate new access-control and camera systems and that a roofing upgrade at Smith is being considered; the treasurer said she could not yet confirm whether sufficient 2019 bond funds remain to cover additional projects pending completion of site work and any change orders.
Facilities staff earlier reported access-control and camera work is proceeding, with a projected August 4 completion for main-door work at Hays and districtwide access-control completion targeted for the first day of school. The bus-lot paving project experienced a weather delay but remains scheduled before school start.
The treasurer said she will provide further follow-up on the CRA responses from the city and on the final remaining balance of 2019 bond funds after pending projects are finalized.
